WASHINGTON — CUCollaborate has launched a new consulting practice focused on helping groups establish new credit unions, formalizing what the company said is several years of hands-on experience guiding organizers through the federal chartering process.
According to CUCollaborate, a data and analytics CUSO, the new service is designed to assist de novo credit unions — newly chartered institutions created from scratch rather than through mergers or charter conversions — through every stage of obtaining a charter, from defining a field of membership to securing approval from the National Credit Union Administration.
The announcement comes at a time when relatively few new credit unions are being chartered each year, despite what the company said remains a continuing need for new financial institutions serving underserved communities and markets.
Underestimating the Demands
CUCollaborate said the chartering process is lengthy and documentation-intensive, and that many organizing groups underestimate the level of detail and planning regulators require before approving a new credit union.
The company said it has spent the last three years working directly with groups seeking charters and has participated in the chartering of three credit unions while assisting nearly a dozen organizing groups.
The new consulting line packages that experience into a structured offering covering the three primary phases of chartering a credit union: proving the concept, preparing and submitting the charter application, and obtaining final regulatory approval, the company said.
What the Service Combines
According to CUCollaborate, the service combines proprietary data tools with chartering expertise to help organizers develop a defensible field of membership, quantify underserved markets, and prepare the business plans and pro forma financial statements required as part of the charter application process.
The company said it also helps new credit unions position themselves to obtain Low-Income Designation and Community Development Financial Institution certification at the outset, rather than pursuing those designations years after opening.
Tools Apply After Launch
In addition to assisting with charter approval, CUCollaborate said the same analytical tools and strategic planning processes can be used after launch to support field-of-membership expansion, member acquisition efforts and branch location strategies.
“For decades, more credit unions have closed than opened,” Sam Brownell, CEO of CUCollaborate, said in a statement. “We want to help reverse that. Chartering a new credit union is one of the most direct ways to bring financial services to people the system has left behind. This consulting line puts our data and our experience behind the groups doing that work.”
The consulting service is available immediately and is open to a range of potential organizers, including community groups, sponsors, fintech companies and existing credit unions seeking to leverage a new charter for purposes such as business lending, according to the company.
About the Company
CUCollaborate describes itself as a data and analytics CUSO that works with credit unions to improve growth, performance and strategic decision-making. The company said it combines proprietary data, technology and industry expertise to help credit unions remain competitive, optimize performance and expand their impact in a changing financial services landscape.
